Executive Searches in Financial Services steady but slow until 2009

According to new data from the Association of Executive Search Consultants (AESC), 69% of retained executive search firm CEOs and Heads of Financial Services Practices predict a rebound in the financial services job market in 2009. Of that 69%, 44% say it will be in the first half of the new year, while 25% say the upswing will not take place until the end of 2009. The Executive Search in Financial Services survey was conducted by the AESC from 28 April to 9 May 2008.

In the first quarter of 2008, the number of executive searches started in the financial services industry decreased 7.2% year-on-year and remained flat quarter-on-quarter. The AESC study indicates that there is very little activity in Investment Banking, Capital Markets, and Real Estate, but that searches are still taking place in Private Wealth / Private Banking, Private Equity / Hedge Funds, and Insurance. According to survey respondents, the majority of FS searches currently taking place are for positions such as: Sales / Fund Raisers, Risk Managers, and Product Specialists, with the least searches for Traders, Money / Portfolio Managers and Research Analysts.

55% report that they have not seen a drop in total compensation within financial services thus far, but 52% predict it will decrease within the next 12 months.

AESC President, Peter Felix, commented, ìWhile executive search in financial services has slowed, it has not stopped completely. The activity we are seeing in selective parts of the sector will continue through 2008 and our members are optimistic that the overall job market in financial services will rebound in early 2009.î

The survey was completed by 50 CEOs and Heads of Financial Services Practices at AESC member firms. Respondents were from the Americas (36%), Europe and the Middle East (48%) and Asia Pacific (16%).

A full copy of the AESC Executive Search in Financial Services report is available upon request to AESC members and the press. Please contact Natasha Renton at nrenton@aesc.org.